Novato biotech firms score tax credits

Two Novato biotechnology companies will receive $2.1 million and $20,000 in tax credits as part of a new state program created to encourage businesses to expand in California, officials said Thursday.

Ultragenyx Pharmaceutical Inc. will receive $2.1 million in tax credits and has pledged to hire 180 employees and invest $16 million in its business; XCell Science, Inc. will get $20,000 in credits and has pledged to hire eight people and invest $213,103, according to the Governor's Office of Business and Economic Development.

The two companies competed in a field of 396 companies.

"We are grateful for the support of the state, the county and the city of Novato. The tax credit will help us advance our goal of helping as many rare disease patients as we can," said Shalini Sharp, the chief financial officer of Ultragenyx.

The recipients of the credits do not receive a check. Rather, they are excused from paying the amount in state taxes.

"The California Competes tax credit encourages businesses large and small to expand in California and create good-paying jobs in a variety of industries," said Kish Rajan, director of the development office.

Chris Stewart, Novato's economic development manager, said he was excited at the news.

"It's important to support existing businesses as well as attract new ones," Stewart said. "The companies that are looking at Novato and the North Marin area will see that local companies are supporting existing businesses and say, 'I want to go there.'"

Stewart, Novato's economic development manager, is working with the Marin Economic Forum and representatives from Napa, Sonoma and Solano counties as part of the North Bay Bio/Life Science Cluster Alliance to create a three-year, $1.5 million marketing campaign to bring such firms to the city, Marin and the North Bay.

Stewart sent a mass email to Novato's life sciences companies in March with instructions on how to apply for the tax credits.

"It was very encouraging that Shalini Sharp took advantage of this," said Stewart. "I met with her within two business days and walked her through the nuances of how the applications are graded. I submitted a letter of support from the city and Rob Eyler (head of the Marin Economic Forum) submitted a letter."

Ultragenyx is developing several possible treatments for rare or extremely rare diseases. Its portfolio includes an intravenous enzyme replacement therapy for treating Sly Syndrome, a cellular and organ dysfunction that typically leads to death by the time patients become teens or reach early adulthood. XCell is a biotechnology company dedicated to providing reagents and services to the stem cell community.